[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4577 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4577

 To amend title 49, United States Code, to improve air carrier service.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 16, 1998

 Mr. Dingell introduced the following bill; which was referred to the 
             Committee on Transportation and Infrastructure

_______________________________________________________________________

                                 A BILL


 
 To amend title 49, United States Code, to improve air carrier service.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Friendly Skies Restoration Act''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the Airline Deregulation Act of 1978 was intended to 
        open markets and result in increased competition and service 
        for the United States public;
            (2) airline competition benefits communities and consumers 
        and is under the jurisdiction of, and should be promoted by, 
        the Federal government;
            (3) the Department of Transportation is proposing rules to 
        address complaints of unfair exclusionary conduct engaged in by 
        major air carriers against new entrant air carriers, including 
        drastic price cuts and flooding the market with new low-fare 
        capacity;
            (4) unfair exclusionary conduct hurts consumers in the long 
        run because it deprives the public of the benefits of 
        competition and alternative carriers;
            (5) there has been increased concentration within the 
        airline industry and most major hubs are dominated by one 
        carrier;
            (6) studies by the General Accounting Office and 
        independent entities show that concentration in the domestic 
        airline industry continues to increase and that, where such 
        concentration exists, fares have increased, with a significant 
        impact on communities and their residents;
            (7) using the Herfindahl-Hirschman Index, an index that the 
        Department of Justice uses to measure market concentration, a 
        recent study found that based on the 50 largest domestic 
        airports, the United States airline industry is excessively 
        concentrated;
            (8) there are proposals before the Department of 
        Transportation that would combine the Nation's 6 largest 
        carriers into 3 alliances with strengthened control over the 
        United States market;
            (9) several studies by the General Accounting Office reveal 
        that consumers traveling to and from concentrated hub airports 
        pay prices for air transportation more than 20 percent higher 
        than consumers traveling in competitive markets;
            (10) the introduction of low-fare competition into certain 
        markets has enabled more consumers to fly in those markets, 
        resulting in enormous economic growth for those communities;
            (11) although the deregulation of the domestic airline 
        industry has led to lower fares for many air travelers, the 
        promised benefits of airline deregulation have yet to be 
        realized;
            (12) the Secretary of Transportation needs additional 
        authority to promulgate and enforce standards of fair 
        competition in the airline industry under section 41712 of 
        title 49, United States Code;
            (13) the General Accounting Office has identified a number 
        of issues that the Department of Transportation could address 
        to lower barriers to entry and increase competition in the 
        airline market, such as slot restrictions and exclusive airport 
        gate leases;
            (14) of the more than 3,100 domestic air carrier slots at 
        the 4 slot-controlled airports in the United States, known as 
        ``high density airports''--
                    (A) fewer than 45 slots are held collectively by 
                new entrant air carriers; and
                    (B) foreign carriers hold approximately twice as 
                many slots as new entrant air carriers;
            (15) the Department of Transportation allowed the 
        established air carriers to retain a large portion of their 
        slots free-of-charge when the current ``Buy-Sell Rule'' was 
        instituted in 1985;
            (16) access to slot-controlled airports is crucial to 
        establishing new air service in the heavily-traveled eastern 
        and midwestern markets and if carriers are going to be able to 
        increase services to markets served by small hub airports and 
        medium hub airports, particularly in the Southeast and Midwest;
            (17) the National Commission to Ensure a Strong Competitive 
        Airline Industry recommended that the Federal Aviation 
        Administration review the rule that limits operations at high 
        density airports with the aim of either removing these 
        artificial limits or raising them to the highest practicable 
        level consistent with safety requirements;
            (18) the General Accounting Office reports that additional 
        action is needed because the Department of Transportation is 
        limited in the number of new slots the Department can grant 
        through the current exemption process;
            (19) recent evidence shows that labor strikes at major 
        airlines ground thousands of daily flights and hold hundreds of 
        thousands of United States travelers hostage; and
            (20) the United States public should be able to travel at 
        reasonable rates to visit family members, take hard-earned 
        vacations, visit old friends, be with a loved one, attend a 
        friend's wedding, visit grandchildren, and make those valuable 
        face-to-face contacts for business.

SEC. 3. JOINT VENTURE UNFAIR PRACTICES.

    Section 41712 of title 49, U.S. Code, is amended--
            (1) by inserting ``(a) In General.--'' before ``On the 
        initiative''; and
            (2) by adding at the end the following:
    ``(b) Joint Venture Unfair Practices.--
            ``(1) Definitions.--In this subsection, the following 
        definitions apply:
                    ``(A) Joint venture agreement.--(i) The term `joint 
                venture agreement' means an agreement entered into by a 
                major air carrier on or after January 1, 1998, with 
                regard to code-sharing, blocked-space arrangements, 
                long-term wet leases (as defined in section 207.1 of 
                title 14, Code of Federal Regulations) of a substantial 
                number (as defined by the Secretary by regulation) of 
                aircraft, or frequent flyer programs; or
                    ``(ii) any other cooperative working arrangement 
                (as defined by the Secretary by regulation) between 2 
                or more major air carriers that affects more than 10 
                percent of the total number of available seat miles 
                offered by the major air carriers.
                    ``(B) Major air carrier.--Term `major air carrier' 
                means a passenger air carrier that is certificated 
                under chapter 411 of this title and included in Carrier 
                Group III under criteria contained in section 04 of 
                part 241 of title 14, Code of Federal Regulations.
            ``(2) Submission of joint venture agreement for review.--At 
        least 30 days before a joint venture agreement may take effect, 
        each of the major air carriers that entered into the agreement 
        shall submit to the Secretary for review under this 
        subsection--
                    ``(A) a complete copy of the joint venture 
                agreement and all related agreements; and
                    ``(B) other information and documentary material 
                that the Secretary may require by regulation as 
                necessary for deciding whether to institute a 
                proceeding to determine if the joint venture agreement 
                violates this section.
            ``(3) Investigation.--The Secretary may conduct an 
        investigation as the basis for deciding whether to institute a 
        proceeding to determine if the implementation of the joint 
        venture agreement will constitute an unfair or deceptive 
        practice or an unfair method of competition in violation of 
        this section. If the Secretary undertakes an investigation, the 
        Secretary shall publish in the Federal Register the reasons of 
        the Secretary for undertaking the investigation.
            ``(4) Submission of additional information and extension of 
        waiting period.--
                    ``(A) Additional information.--Before the last day 
                of the 30-day period referred to in paragraph (2), the 
                Secretary may require the submission of additional 
                information of documentary material relevant to the 
                proposed joint venture agreement from any party to the 
                agreement or from any subsidiary or affiliated 
                corporation of the party.
                    ``(B) Extension of waiting period.--If the 
                Secretary requires the submission of additional 
                information or documentary materials under subparagraph 
                (A), the Secretary may extend the 30-day period 
                referred to in paragraph (2) until the 30th day 
                following--
                            ``(i) the date of submission of the 
                        additional information or material; or
                            ``(ii) if the request is not fully complied 
                        with, the date of submission of any additional 
                        information or material in compliance with the 
                        request and a statement by the party that the 
party cannot comply with the remainder of the request.
            ``(5) Period for decision.--Before the last day of the 30-
        day period referred to in paragraph (2) or the 30-day period 
        referred to in paragraph (4), as the case may be, the Secretary 
        shall--
                    ``(A) decide whether to terminate the investigation 
                of the joint venture or institute a formal proceeding 
                to determine if the joint venture agreement violates 
                this section; and
                    ``(B) if the Secretary decides that implementation 
                of the joint venture agreement appears likely to be an 
                unfair or deceptive practice or an unfair method of 
                competition in violation of this section, institute a 
                proceeding to determine if the implementation of the 
                joint venture agreement will constitute such a 
                violation.
            ``(6) Stay after institution of proceeding.--If the 
        Secretary institutes a proceeding under paragraph (5), the 
        Secretary may enter an order to stay the implementation of the 
        joint venture agreement by the parties to the agreement during 
        the 6-month period beginning on the date of issuance of the 
        order.
            ``(7) Prior agreement.--With respect to a joint venture 
        agreement entered into before the date of enactment of this 
        section as to which the Secretary finds that--
                    ``(A) the parties have submitted the agreement to 
                the Secretary before such date of enactment; and
                    ``(B) the parties have submitted all information on 
                the agreement requested by the Secretary, the waiting 
                periods described in paragraphs (2) and (4) shall begin 
                on the date, as determined by the Secretary, on which 
                all such information was submitted and end on the last 
                day to which the period could be extended under this 
                section.
            ``(8) Termination of waiting period.--At any time after the 
        date of submission of a joint venture agreement under paragraph 
        (2), the Secretary may terminate the waiting periods referred 
        to in paragraphs (2) and (4) with respect to the agreement.
            ``(9) Review of decisions.--Any decision made by the 
        Secretary under this subsection with respect to a joint venture 
        agreement may be reviewed by the Secretary after the expiration 
        of the 3-year period beginning on the date of the decision.
            ``(10) Memorandum to prevent duplicative reviews.--Promptly 
        after the date of enactment of this section, the Secretary 
        shall consult with the Assistant Attorney General of the 
        Antitrust Division of the Department of Justice in order to 
        establish, through a written memorandum of understanding, 
        preclearance procedures to prevent unnecessary duplication of 
        effort by the Secretary and the Assistant Attorney General 
        under this section and the United States antitrust laws, 
        respectively.
            ``(11) Limitation on statutory construction.-- The 
        authority granted to the Secretary under this subsection shall 
        not in any way limit the authority of the Attorney General to 
        enforce the antitrust laws as defined in the first section of 
        the Clayton Act (15 U.S.C. 12).''.

SEC. 4. REDISTRIBUTION OF SLOTS BY AUCTION.

    (a) In General.--Subpart III of part A of subtitle VII of title 49, 
United States Code, is amended by adding at the end the following:

                      ``CHAPTER 455--SLOT AUCTIONS

``Sec.
``45501. General authority to create, withdraw, and auction slots.
``45502. Auction.
``45503. Special rules.
``45504. Definitions.
``Sec. 45501. General authority to create, withdraw, and auction slots
    ``(a) In General.--The Secretary of Transportation shall allocate 
slots at each slot-controlled airport for assignment to new entrant air 
carriers and limited incumbent carriers in accordance with this 
chapter.
    ``(b) Application Process--
            ``(1) Request for slots.--An air carrier with appropriate 
        Federal Aviation Administration safety certification and 
        Department of Transportation economic certification may submit 
        a request to the Secretary for slots at a high density airport. 
        The application shall include--
                    ``(A) the markets to be served;
                    ``(B) the times requested;
                    ``(C) information on the passenger demand for the 
                service to be provided; and
                    ``(D) such additional information as the Secretary 
                may require.
            ``(2) Action on request; failure to act.--Within 45 days 
        after a request under paragraph (1) is received by the 
        Secretary, the Secretary shall--
                    ``(A) approve the request for processing if the 
                Secretary believes that--
                            ``(i) the applicant can operate the service 
                        for a period of not less than 180 days; and
                            ``(ii) the service will improve the 
                        competitive environment; or
                    ``(B) return the request to the applicant for 
                further information.
        If the Secretary neither approves the request under 
        subparagraph (A) nor returns the request under subparagraph (B) 
        within the 45-day period beginning on the date it is received, 
        then the request is deemed to have been approved on the 45th 
        day.
    ``(c) Allocation Process.--
            ``(1) If slots are available.--If an application under 
        subsection (b) is approved for processing, the Secretary first 
        shall allocate slots within 60 minutes of the requested times 
        if--
                    ``(A) unused slots are available; or
                    ``(B) slots may be awarded through the exemption 
                process in accordance with the Federal Aviation 
                Administration's air traffic priorities.
            ``(2) If slots are unavailable.--If an application under 
        subsection (b) is approved for processing but the requested 
        slots are not available for allocation under paragraph (1), 
        then the Secretary may withdraw slots under subsection (d) for 
        auction under section 45502 or create new slots.
    ``(d) Withdrawal of Slots for Auction.--
            ``(1) Withdrawal of existing slot assignments.--The 
        Secretary shall withdraw, from major carriers at each airport--
                    ``(A) for the first auction under this section, not 
                more than 10 percent of the auctionable slots assigned 
                to such carriers at that airport; and
                    ``(B) for any subsequent auction under this 
                section, not more than 5 percent of the auctionable 
                slots assigned to such carriers at that airport.
            ``(2) Frequency.--Auctions under this section shall not be 
        held more frequently than 24 months after the date of the 
        preceding auction.
            ``(3) Auctionable slots.--For purposes of this subsection, 
        an auctionable slot is--
                    ``(A) a slot assigned to an air carrier in 1985 
                that is still assigned to that air carrier, or a slot 
                received in even exchange with another air carrier for 
                a slot assigned to that air carrier in 1985; and
                    ``(B) any slot other than a slot used by a major 
                carrier to provide direct service to an airport that is 
                a small or medium hub airport.
``Sec. 45502. Auction
    ``(a) General Authority.--The Secretary of Transportation shall 
assign a slot to a qualified applicant through the use of a system of 
competitive bidding.
    ``(b) Uses to Which Bidding May Apply.--A slot may be assigned 
under this subsection if the Secretary determines that the assignment 
of such slot will, or is reasonably likely to, increase competition 
among air carriers nationally, regionally, or in the markets affected 
by the slot assignment in accordance with section 45501(b).
    ``(c) Design of Systems of Competitive Bidding.--In identifying 
slots to be withdrawn for auction under section 45501(d)(1), in 
specifying eligibility and other characteristics of such slots, and in 
designing the methodologies for use under this subsection, the 
Secretary shall include safeguards to protect the public interest in 
the use of the slots and shall seek to promote the following 
objectives:
            ``(1) Increasing competition in the provision of air 
        transportation in a way that benefits the public.
            ``(2) Promoting economic opportunity and competition and 
        ensuring that air transportation at competitive rates is 
        readily accessible to the American people by avoiding excessive 
        concentration of slots among major air carriers.
            ``(3) Recovery for the public of a portion of the value of 
        the slots made available by competitive bidding and the 
        avoidance of unjust enrichment through the methods employed to 
        award slots.
            ``(4) Efficient and intensive use of slots.
    ``(d) Bidder Qualification.--No air carrier (other than a new 
entrant air carrier or a limited incumbent carrier) may participate in 
a system of competitive bidding under this section. No license shall be 
granted to an applicant selected pursuant to this section unless the 
Secretary determines that the applicant is qualified to utilize the 
slot or slots to be so assigned.
    ``(e) Rules of Construction.--Nothing in this section, or in the 
use of competitive bidding, shall--
            ``(1) alter slots allocation criteria and procedures 
        established by the other provisions of this subtitle;
            ``(2) diminish the authority of the Secretary under the 
        other provisions of this subtitle to regulate or reclaim slots;
            ``(3) be construed to convey any rights, including any 
        expectation of renewal of a slot assignment, that differ from 
the rights that apply to other slots at the same airport that were not 
issued pursuant to this section; or
            ``(4) be construed to prohibit the Secretary from issuing 
        additional slots.
    ``(f) Consideration of Revenues in Public Interest 
Determinations.--
            ``(1) Consideration prohibited.--In making a decision to 
        assign slots pursuant to this section, and in prescribing 
        regulations pursuant to this section, the Secretary may not 
        base a finding of public interest, convenience, and necessity 
        on the expectation of Federal revenues from the use of a system 
        of competitive bidding under this section.
            ``(2) Consideration limited.--In prescribing regulations 
        pursuant to this section, the Secretary may not base a finding 
        of public interest, convenience, and necessity solely or 
        predominantly on the expectation of Federal revenues from the 
        use of a system of competitive bidding under this section.
            ``(3) Consideration of demand for slots.--Nothing in this 
        subsection shall be construed to prevent the Secretary from 
        considering consumer demand for slots-based services.
    ``(g) Treatment of Revenues.--
            ``(1) General rule.--Except as provided in paragraph (2), 
        all proceeds from the use of a competitive bidding system under 
        this subsection shall be deposited in the Airport and Airway 
        Trust Fund established under section 9502 of the Internal 
        Revenue Code of 1986.
            ``(2) Deposit and use of auction escrow accounts.--Any 
        deposits the Secretary may require for the qualification of any 
        person to bid in a system of competitive bidding pursuant to 
        this subsection shall be deposited in an interest bearing 
        account at a financial institution designated for purposes of 
        this subsection by the Secretary (after consultation with the 
        Secretary of the Treasury). Within 45 days following the 
        conclusion of the competitive bidding--
                    ``(A) the deposits of successful bidders shall be 
                paid to the Treasury;
                    ``(B) the deposits of unsuccessful bidders shall be 
                returned to such bidders; and
                    ``(C) the interest accrued to the account shall be 
                returned to each successful and unsuccessful bidder in 
                the ratio that the amount deposited by the bidder bears 
                to the total amount deposited by all bidders, except 
                that before returning such amounts the Secretary shall 
                deduct a sum equal to the administrative expenses 
                incurred by the Secretary in conducting the auction and 
                shall transfer such sum to the Airport and Airway Trust 
                Fund.
    ``(h) Evaluation.--Not later than 180 days after the initiation of 
competitive bidding under this section, the Secretary shall conduct a 
public inquiry and submit to the Congress a report--
            ``(1) containing a statement of the revenues obtained, and 
        a projection of the future revenues, from the use of 
        competitive bidding systems under this section;
            ``(2) describing the methodologies established by the 
        Secretary pursuant to subsections (c) and (d);
            ``(3) comparing the relative advantages and disadvantages 
        of such methodologies in terms of attaining the objectives 
        described in such subsections; and
            ``(4) recommending any statutory changes that are needed to 
        improve the competitive bidding process.
``Sec. 45503. Special rules
    ``(a) Resale or Reversion of Purchased Slots.--
            ``(1) Resale.--A slot assigned by competitive bidding under 
        section 45502 may be--
                    ``(A) sold by the air carrier to which it was 
                assigned only to a new entrant air carrier or limited 
                incumbent carrier within 24 months of the slot 
                acquisition; or
                    ``(B) leased to any air carrier, except that any 
                such leased slot shall be sold to a new entrant air 
                carrier or limited incumbent air carrier that offers to 
                purchase it.
            ``(2) Reversion.--A slot assigned by competitive bidding 
        under section 45502 that is lost by the air carrier to which it 
        was assigned under section 93.227 of title 14 of the Code of 
        Federal Regulations shall be returned to the Federal Aviation 
        Administration.
    ``(b) Other Existing Slots.--
            ``(1) Expiration.--Any slot not withdrawn for assignment 
        under this chapter shall continue in effect until the earlier 
        of--
                    ``(A) the date on which it is subsequently 
                withdrawn for such assignment; or
                    ``(B) the date on which it expires or is withdrawn 
                according to the terms of its assignment.
            ``(2) Future revenues.--Any amount paid for assignment or 
        use of an expired slot shall be treated in accordance with the 
        provisions of section 45502(h) as if received under that 
        section.
``Sec. 45504. Definitions
    ``In this chapter, the following definitions apply:
            ``(1) High density airport.--The term `high density 
        airport' has the meaning given it by section 41714(h)(2).
            ``(2) New entrant air carrier; limited incumbent carrier.--
        The terms `new entrant air carrier' and `limited incumbent 
        carrier' have the meaning given such terms by section 93.213 of 
        title 14, Code of Federal Regulations, except that the term 
        does not include an air carrier at a high density airport that 
        has a substantial marketing arrangement, as determined by the 
        Secretary, with another air carrier holding more than 10 
        percent of the slots at the airport or an air carrier that is 
        owned or controlled, in whole or in part, by such a carrier.
            ``(3) Major carrier.--The term `major carrier' means an air 
        carrier to which part 121 of such title applies.
            ``(4) Medium hub airport.--The term `medium hub airport' 
        means an airport that each year has at least 0.25 percent, but 
        less than 1.00 percent, of the total annual boardings in the 
        United States.
            ``(5) Slot.--The term `slot' has the meaning given that 
        term by section 41714(h)(4).
            ``(6) Small hub airport.--The term `small hub airport' has 
        the meaning given that term by section 41731(a)(5).''.
    (b) Clerical Amendment.--The analysis for such subtitle is amended 
by inserting after the item relating to chapter 453 the following:

``455. SLOT AUCTIONS........................................   45501''.

SEC. 5. PENALTIES FOR UNFAIR METHODS OF COMPETITION.

    (a) In General.--Chapter 463 of title 49, United States Code, is 
amended by adding at the end the following:
``Sec. 46317. Penalties for unfair methods of competition
    ``(a) Maintenance of Levels of Capacity and Fare Pricing.--If the 
Secretary determines that an air carrier is or has violated section 
41712 by engaging, with respect to air transportation on any route, in 
an unfair method of competition, as defined by regulation issued under 
Docket Number OST-98-3713 or any other regulation issued by the 
Department of Transportation, the Secretary may require the carrier, as 
a condition of continued authority to provide service on such route, to 
maintain for a period of not more than 2 years levels of capacity and 
fare pricing that are similar to that which was determined 
exclusionary.
    ``(b) Maximum Civil Penalty.--Notwithstanding section 46301(a)(1), 
the maximum civil penalty for the violation described in subsection (a) 
shall be $10,000.''.
    (b) Clerical Amendment.--The analysis for chapter 463 of such title 
is amended by adding at the end the following:

``Sec. 46317. Penalties for unfair methods of competition.''.

SEC. 6. REALLOCATION OF SLOTS DURING LABOR STRIKES.

    Section 41714 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(i) Reallocation of Slots During Labor Strikes.--If an air 
carrier is not using a slot allocated to the carrier during the period 
of a labor strike involving the carrier, the President may authorize 
another carrier to use the slot, as well as airport gates and other 
facilities associated with the slot, during such period. The President 
shall require a carrier so authorized to reimburse appropriate persons 
for use of the slot and associated facilities.''.

SEC. 7. REGULATION OF ROUTES IN AIR TRANSPORTATION WITH INSUFFICIENT 
              COMPETITION.

    (a) In General.--Chapter 415 of title 49, United States Code, is 
amended by adding at the end the following:
``Sec. 41512. Authority of the Secretary of Transportation to change 
              prices, classifications, rules, and practices for 
              noncompetitive routes in air transportation
    ``(a) General.--When the Secretary of Transportation decides that a 
price charged or received by an air carrier for service on a 
noncompetitive route in air transportation, or a classification, rule, 
or practice affecting that price or the value of the transportation 
provided under that price, is or will be unreasonable, the Secretary 
may--
            ``(1) change the price, classification, rule, or practice 
        as necessary; and
            ``(2) order the air carrier to stop charging or collecting 
        the unreasonable price or carrying out the unreasonable 
        classification, rule, or practice.
    ``(b) Noncompetitive Routes in Air Transportation.--For purposes of 
subsection (a), a noncompetitive route in air transportation is a route 
for which the Secretary determines--
            ``(1) that there are less than 2 air carriers in full 
        competition, as defined by the Secretary by regulation; or
            ``(2) that an air carrier controls more than 60 percent of 
        the market share, as determined based on annual passenger 
        enplanements.
    ``(c) When Secretary May Act.--The Secretary may act under this 
section on the Secretary's own initiative or on a complaint filed with 
the Secretary and only after notice and an opportunity for a 
hearing.''.
    (b) Conforming Amendment.--The analysis for such chapter is amended 
by adding at the end the following new item:

``41512. Authority of the Secretary of Transportation to change prices, 
                            classifications, rules, and practices for 
                            noncompetitive routes in air 
                            transportation.''.

SEC. 8. DISCLOSURE OF ROUTE COMPETITION AND CONSUMER VALUE INFORMATION.

    (a) Reports Ranking Air Carrier Routes by Average Cost to 
Passengers.--
            (1) In general.--The Secretary shall submit to Congress, 
        and make available to the public, a quarterly report containing 
        a ranking of the 10 domestic routes with the highest average 
        cost to the passenger and the 10 domestic routes with the 
        lowest average cost to the passenger. The report shall identify 
        the airlines that operate on each of those routes.
            (2) Requirements.--In developing reports under this 
        subsection, the Secretary shall consider such factors and 
        criteria as the Secretary considers appropriate.
    (b) Reports Ranking Large Hub Airports by Market Concentration.--
The Secretary shall submit to Congress, and make available to the 
public, a quarterly report ranking the large hub airports by market 
concentration using the measure known as the Herfindahl-Hirschmann 
Index and identifying the market share of each airline operating at 
each of those airports.
    (c) Deadline.--The Secretary shall begin submitting reports under 
this section not later than 180 days after the date of enactment of 
this Act.

SEC. 9. FACILITIES ACCESS.

    (a) Study.--The Secretary of Transportation shall conduct a study 
on the ability of and proposals for new entrant carriers, and carriers 
with less than 5 percent of the departures at a major hub airport, to 
obtain permanent gates and other facilities at the airport on terms 
substantially equivalent to the terms provided to incumbent carriers at 
the airport.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall transmit to Congress a report containing 
the results of the study conducted under subsection (a), including an 
assessment of any impact of proposals referred to in subsection (a) on 
State and local units of government.
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